Home Invest Belgium (HOMI) H1 2024 earnings summary

Executive summary

• Portfolio valued at €846 million as of June 30, 2024, with over 90% in residential real estate, mainly in Belgium (91%) and the Netherlands (9%), and a strong focus on Brussels (66%).

• Over 50% of properties are less than 10 years old, with strong energy performance and a target to further reduce energy consumption.

• Delivered two major sustainable residential projects: Den Dam in Antwerp and City Square in Hasselt, each with high occupancy.

• Announced property sales totaling €40.6 million, 25% above last estimated fair value.

• Market capitalization at €347 million as of June 30, 2024; listed on Euronext Brussels since 1999.

Financial highlights

• Net rental result rose 6.4% year-over-year to €18.06 million in H1 2024; property result up 7.2% to €15.63 million.

• EBIT increased 14.0% year-over-year to €12.26 million; operating margin improved to 67.9%.

• Net result (group share) was €64.1 million, up from a loss of €12.8 million in H1 2023, mainly due to a €49.8 million positive change in fair value of investment properties.

• EPRA earnings rose 14.8% year-over-year to €9.94 million; EPRA earnings per share increased 3.9% to €0.51.

• NAV per share increased 10.8% to €23.28; EPRA NTA per share up 9.4% to €22.26; share trades at a 22.9%–26.2% discount to NAV.

Outlook and guidance

• Expects EPRA earnings per share to rise to €1.15 for FY 2024 (from €1.13 in FY 2023), despite share capital increases.

• Distribution to shareholders set at €1.12 per share for 2023, marking 24 consecutive years of increases.

• Board targets distribution growth at or above long-term inflation, supported by indexed rent flows, cost control, hedging, and a robust development pipeline.

• Strong demand for quality housing and supportive demographic trends expected to sustain growth.